The board of directors of the music royalty fund say they would switch their support from Concord's bid to the private equity giant's offer if Blackstone makes it official.
The private equity firm offered $1.24 per share, versus Concord's $1.14 per share offer issued on Thursday (April 18).
An internal report released by the new board of directors detailed how accounting practices “materially” overstated annual revenue, among other issues.
Shot Tower Capital says inadequate financial analysis and management from the investment adviser led to inaccurate information at multiple levels.
The worth of the company’s catalog was cut by 26% last week, confirming many investors’ suspicions that previous valuations had overshot the mark.
The fee is meant to reduce risk for bidders with "bona fide" offers.
The owner of rights to songs by Neil Young, Shakira, Journey and more will hold an extraordinary general meeting to address shareholders' concerns.
To counteract a call option given to the investment advisor, the board proposed paying prospective buyers a fee of up to 20 million pounds to make bidding for its music assets more appealing.
In the final week of 2023, the 20-stock music index gained 1.1% to 1,534.07.
The board cautioned investors to use the company's valuation metrics "with a higher degree of caution and less certainty" than normal.
